The Impacts of Not Completing Your Construction Project on Time

Construction is a complex process. The complexity is one of the reasons for one of the feared yet uncontrollable consequences. The con is a delay in the completion of the construction project. A construction project includes expensive equipment, significant workforce, large overhead and huge payrolls for contractor and payroll for owners. While learning the various causes for delay, it is also essential to look for solutions. Cloud-based construction project management software be one of them. Let’s learn more.

A lot of events can cause delays in completing a construction project including late delivery of materials. These include Late delivery of the construction materials, errors in the plan, equipment issues, change orders, weather and site conditions. Also, even before the construction starts, budgeting and funding can push the project back, this may also delay or in some cases derail the project. The uncertainty of the financing can result in more construction delays.

These are unexpected and also uncontrollable situations; hence one must have a plan for delays:

With so much happening with the construction process, you must have a plan to coordinate resources and draft any recovery plans to prepare for any unexpected situation.

Experience is vital when the project is in the planning phase. It is essential to understand the requirements of the project and predict the challenges – lead-time materials or steel which can be fabricated at specific times of the year only.

Teamwork and communication are essential in construction projects. Construction project management software cloud can assist in doing so. Open, transparent, honest discussion is the best way to design a plan to eliminate delay in construction. It is a well-known fact that no construction project stays on schedule or move as planned. Irrespective of how meticulously a project is designed, there are specific issues which can be known when they come to the forth.

The impact of not completing the construction project on time can be felt in 6 ways:

Cost Overrun

Time Overrun

Dispute

Total abandonment

Negotiation and

Litigation

Cost Overrun

Cost overrun is common when a construction project is delayed. The damage suffered is way more than what was initially budgeted.

A cost overrun can be described as a percentage of the total cost or the overall percentage in addition to the original budget. It includes the overrun amount or the cost overruns of the original budget. It is highly essential to identify the main reason for addressing and managing the cost overruns. While adverse weather conditions can result in damage or delays which in turn result in cost overruns, however, there are more complex project management issues, and these are difficult to resolve. It has been noted that the most significant cost overruns are due to a change in requirements. For instance, when a client requires a 20% increase in space than initially decided, the cost will increase by 20%. For this, the project brief should be comprehensive. All the stakeholders should accept it and accept the performance and scope of work. Project planning and pre-construction estimates are essential to ensure accuracy in the costs when the project is complicated, and the changes are inevitable.

These kinds of construction issues can be eliminated with project management and cost controlling software or BIM to ensure all the stakeholders use the same design information and can make quick adjustments. These are usually features of cloud-based construction project management software.

Time overrun

The project is often delayed and surpasses its expectant completion time as a result of a few difficulties. It requires more time to complete the project than planned.

Reasons

When the plan and the specifications are not received by the contractor well in time, this mistake has the potential to delay the project beyond the date decided initially. Unavailability of the sufficient resources at the site can further push the completion time ahead.

Insufficient financial or technical management makes one wait for these and thus a lot of time is wasted in getting it. An extra amount of work to be carried out is another reason in addition to extreme weather conditions and natural calamities for time overrun. Some accidents on site may also put a halt to the construction work for some time. A few deficiencies in the initial plan which are either wrong or faulty are reasons enough for the time overrun in construction.

To eliminate time overrun in construction, project documentation is essential. A construction project management cloud software with a document management feature does it beautifully. Accurate and correct information can help the stakeholders make the best decision under any situation. Some collaborative tools have the potential to make it simple to exchange the data all across the teams. These have the correct tools and information to prevent time overrun.

Disputes in Construction

Some environmental and behavioral factors can lead to conflicts in construction. Construction projects are long-term transactions with high levels of uncertainty and complications. Henceforth, resolving any detail and predict the risk estimates is difficult. The resultant situations arising are not addressed well by the contract. A few of the primary factors responsible for construction disputes are contractual problems and behavior.

Uncertainty: The difference between the amounts of information needed to accomplish a task to the quantity of information available.

Contractual problems: a standard contract lays down the obligations and risks for both the parties to agree. The rigid agreements are not right for the long transactions which already are under clouds of uncertainty.

Behavior: issues may erupt when the parties want to gain as much as they can from the project.

Some common causes of construction disputes include acceleration, coordination, culture, varied goals, design, quality and craft, project complications, site conditions, and tender. Construction disputes can be resolved with alternative dispute resolution techniques available such as arbitration; court-annexed non-binding arbitration, court settlement process, expert determination, mediation, conciliation, utility regulators and more. Contract claims and dispute resolution boards are other methods to resolve construction disputes. Some of the conflicts won’t even arise if you use cloud-based construction project management software.

Total abandonment of a Project

Complete abandonment takes place when a contractor cannot perform on the project. There is an array of reasons for this. When the contractor cannot start the project in a time when the contractor cannot complete the agreed work, the contractor does not resume work in time, and this is the contractor’s failure. This situation is called as an abandonment of a construction project.

Well, abandonment of a construction project sans a valid, legal excuse is the reason for disciplinary actions. For abandonment charges irrespective of contract abandonment or abandonment of a construction project, it is suggested that the contractor take the counsel of a construction attorney.

Abandonment concerns all working on the project as it leads to delays and massive expenditure to replace a contractor with another. Sometimes the cost can be much higher than the original one.

The abandonment of construction projects can affect the economy, environment, and society. It wastes useful resources. The cons can be far-reaching sometimes than anticipated.

Negotiation

Negotiation is a complicated process but a must to resolve disagreements and conflicts. When one of the parties does not accept the solution offered by the mediator, they are free to appeal to an arbitrator. The process plays a crucial role in resolving claims and avoiding any disputes while also maintaining a good healthy relationship between the various stakeholders of a project, but protracted negotiations can result in and as consequence of delays.

An in-depth negotiation of contractor or owner caused delays can take care of the costs for owner suspension or acceleration, workforce supplementation, escalation or mobilization costs, whether or other obstructions. When the issues are identified early in the project, a contractor is free to hire an independent expert to assess schedule delays and start building a claim for extra compensation.

Litigation

The last impact of not completing your construction project on time is legal action or as we all call it litigation. When the two parties have a dispute, there are not many options for resolution. However, there is a difference between construction litigation and arbitration. Each party needs to understand this to have the best solution for the dispute.

When the two disputing parties are unable to resolve their dispute with mediation, it turns into a case that must run a trial by a jury or a judge in the court. A court case involves the plaintiff, the party claiming the charge and finally the defendant. Again, if they use online construction project management software, a lot of disputes won’t arise nor would the need for litigation.

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